People Smartz Blog

Business Confidence Rising - Wages Pressure Becoming a Concern for Business

Mon, 06 Feb 2012 23:09:00 GMT

The HR Coach Research Institute has released its latest quarterly index.

According to the research:

"The last quarter has shown a marked change in business sentiment in Australia with an increase of 6% in overall business confidence. The last half of 2011 saw a 15% drop in business confidence so the increase offers welcome respite. There is, however, a lot of ground to make up from the highs of 2007 and early 2008.

For the first time since 2008 wage pressure looks to be back on the agenda with an 18% increase in wage expectations by employers"

To download the latest Quarterly Index Dashboard - Click Here

If you "employ" Independent Contractors - You Need to Read This!

Fri, 03 Feb 2012 11:08:00 GMT

In October 2009, I wrote a blog article regarding the increasing risk businesses were putting themselves under when utilising independent contractors in their business.

This article was titled Independent Contractors - Benefit or Risk to Your Business? and you can read it again by clicking on the link - I strongly recommend you do.

An independent contractor is someone who is self-employed and contracts his or her services to clients - most often other businesses.

Unfortunately, over the years a number of employers have used this as an avenue to avoid their obligations to their employees in respect to things like accruals, superannuation and other entitlements. These type of arrangements are called "Sham Contracts".

There has been a very strong push against Sham Contracting by the Fair Work Ombudsman over the last 12 months. In particular, these investigations have revolved around three industries - cleaning, hair and beauty and call centres.

These audits found that 23% of businesses had "mis-classified" employees as independent contractors. In other words - nearly a quarter of those companies audited were mis-classifying employees as independent contractors.

A recent experience of company I know is an example of how these laws can effect a business:

About this time last year, I met with a gentleman who had started a commercial cleaning company. Based on common practice in the industry, he had engaged a good number of independent contractors to service his growing client base.

Now, he had developed a business model designed around several main "objectives" including high cleaning standards, good quality cleaning products and a highly organised workforce.

The problem was that these "objectives" also defined the relationship he had with his "independent contractors".

Over the past 12 months, he has worked hard to grow his business. During this time, he had also worked, with the aid of a specialist company, to set up his independent contractor arrangements and bring them within the requirements of the legislation.

During that period he has also been audited by the Fair Work Ombudsman and successfully negotiated their investigation.

However, he was advised several weeks ago by the company assisting him that they could not continue to assist him (I should point out for very legitimate reasons with no fault on him or his company).

The result was that he could not continue to run his company on the model he had developed - utilising independent contractors.

He was faced with a choice - continue to operate with independent contractors and face potential issues with the law or move his team to an employment arrangement - given his experience with the Fair Work Ombudsman, he decided to abide by the law.

Unfortunately, when he spoke to his independent contractors, they were not willing to move to an employment relationship.

This left him with only one option - to wind back his business to the point where the work could be handled by himself and his partner.

So the end result - a good number of people are now out of work, a number of businesses are now looking for a new cleaning company and a once thriving, growing business is now "diminishing" in size and operations.

This story highlights how the wrong employment structure can affect your business. It was never the intention of the Fair Work Ombudsman's activities to create this situation - this is the result of having the wrong structure operating in the first place.

My recommendations from October 2010 still have a strong meaning now and I recommend you consider them in your business:

"I strongly recommend to my clients before entering into independent contractors arrangements that they closely review the relationship they are forming. While the benefits of utilising independent contractors are significant, if not structured properly, they also introduce an element of risk to the business."

People Smartz is able to assist businesses with the process of employing independent contractors. If you have, or are considering, independent contractors in your business - contact us today.

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Small Business - Make sure you are compliant with Industrial Relations Laws

Fri, 03 Feb 2012 06:17:00 GMT

It is becoming more and more apparent, that no matter how small your business is, you can not avoid your obligations in regards to meeting your employer obligations.

Many thanks to our great friends at Brands Law for this great example of the line of thinking to which our courts are dealing with breaches of the Fair Work Act:

"Back in April 2011, in a case involving underpayment of penalty rates to employees, Magistrate Hawkins said there was a need to "send a message to the community at large and small employers particularly, that the correct entitlements for employees must be paid and that steps must be taken by employers (of all sizes) to ascertain and comply with minimum entitlements (as opposed to ignoring those obligations).

"Compliance should not be seen as the bastion of the large employers with human resources staff and advisory consultants (accountants, consultants, lawyers) behind them"."

In a speech in May 2011, the Fair Work Ombudsman made a point that it "was not sufficient for companies to turn a blind eye and hope that they are meeting their obligations". He particularly made the point that companies need to make sure that they are resourcing their obligations appropriately.

With this type of language coming from our courts and the Ombudsman, it is very evident and important that all businesses, regardless of size have in place a system for ensuring compliance with their awards, the Fair Work Act and the National Employment Standards.

Our experience with small to medium sized businesses has shown that business people are finding it more and more difficult to manage these obligations. As we have said in our blog posts before - the system itself is not built for small business.

Unfortunately, it appears that the message from our courts is that small businesses need to manage their obligations similarly to the way they would be handled in big business. However, small businesses do not have the human resources staff etc to do that!

Understanding your obligations can be difficult and managing them can be time consuming. The place to start is to ensure you are compliant now!

Why not book one of our People and Business Reviews where we can help you identify the actions you can take to ensure you are meeting your obligations.

Book your review today!

"Simple" Time Management for Small Business People

Sun, 06 Nov 2011 10:00:00 GMT

During a presentation to a group of business people last month I was asked a question about the importance of long term planning in a business.

The person asking the question phrased the question to reflect his own situation where his time on a day to day basis was totally involved in the here and now - “How can I find time to think long term?”

This is a great question!

And the simple answer is…….

There is no simple answer!

One thing to do is to acknowledge is that we do not manage time. What we manage is our use of time. If you really think it through, the distinction between the two is important. The first implies that we can manage a scarce resource and somehow manipulate the number of hours in the day.

Well, if you can find a way to put more than 24 hours into a day let me know – between the two of us, I think we can make a lot of money!

However, if we use the second definition – managing our use of time, we begin to open up a whole different set of possibilities.

Once you accept that it is your use of time that is manageable, this allows you to begin setting in place a simple principle which can really define your ability to “find time”.

You need to begin to differentiate between those things you do which are important, those that are urgent and those that are neither urgent nor important.

Once you begin to understand the difference, you can begin to ask yourself a question – “What is the most important thing I should be doing now?’

In the environment in which we work, often items arise which appear urgent or important but in reality are not. For example, if your long term goal is to develop your business and you receive an email with a great YouTube clip on it – what would be the most important thing for you could do? Watch the video or make those phone calls to develop your business?

Now as I said at the start of this article – there is no simple answer! This is because even if you do ask yourself the question, it takes discipline to do the important when the urgent continues to beckon so enticingly. Also, there are times when urgent things are important – meeting a customer’s reasonable needs for example.

It is because of this that knowing your goals/values and committing to them is important. They provide you with direction and can assist you in your use of time.

So my answer to the business person when he asked his question?

“Identify what is important to you, identify what is urgent and identify what is neither urgent or important – when you’ve done that, start working out how to ensure you have the time to achieve your goals”

As I said, not a simple answer, but a good start!

How well are you managing your time? How good is your goal setting? Why not contact us for a Complementary Coaching Session to assist you!

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A Checklist To Prepare Your Company For the Xmas Office Party

Fri, 14 Oct 2011 04:06:00 GMT

Yes it nearing the end of the year. We are entering party season - a great time to unwind, rub shoulders with workmates etc. This can be a fun time!

But end of year parties have a very serious side as many of these antics lead to "regrets" after.

Recent research in Australia found that 70% of people believed that hitting the booze led to a more "personal" feeling amongst staff. Nearly a quarter of females interviewed admitted that their boss had made a pass at them at an office party.

Such behaviours can present many problems for businesses, particularly if the "antics" involved lead to a complaint from a member of staff regarding the behaviour of another.

It would be easy to say "no office party" or "its too risky", but sometimes the advantages of holding the party far outweigh the negatives. The decision to have or not have one is one for the business alone.

I would recommend a level headed approach to this years Xmas party - making sure the party is well planned and your staff are aware of the required behaviours before hand. This way you can have the fun while managing the risk!

To help you plan for your businesses party, download our Christmas Checklist today.

People Challenges Facing Business - Are you ready?

Fri, 30 Sep 2011 03:33:00 GMT

Recent research has identified the challenges businesses are facing in managing people in 2011.

This is quite a list!

Uncertainty in times of change impacts on confidence of employers and clarity of their strategic direction.
Fatigue of key employees and additional workload due to shrinking workplaces leads to disengaged workers or management turnover.
Labour is on average the largest cost to business. The statistics show that it is escalating due to employee expectations for pay increases, the growing anxiety of individual debt and increased competition between employers for talent.
Over 50% of employees will be looking for new jobs in the next year.
Employers are ramping up employee numbers but not planning on wage increases.
Small business is struggling with the fact that they cannot attract quality applicants.
It is estimated that it can cost more than $48,000 to replace an average employee on $45,000 a year.
The Red Tape Commission estimates 75% of businesses struggle with paperwork and compliance.
According to the published National Accountant, 65% of employees have experienced harassment.
Changes in legislation causes confusion and mistrust. Businesses are at risk externally and it cannot be ignored. Changes in the health and safety and parental leave in Australia are major changes in compliance.
Internationally, labour laws are becoming more stringent and complex, adding a cost and compliance burden that did not exist before.
The aging workforce, generational shift, technology adaptation and social media impact are issues that will take hold in the coming year.

If you identify with any of these and are wondering how you can meet the challenge - then give People Smartz a call! Contact Us

What Successful Businesses Do Differently

Fri, 30 Sep 2011 02:59:00 GMT

Ever wondered what successful businesses do differently? We may have some answers for you in a new white paper!

I don't think anyone will disagree that we are operating our businesses in a very complex environment at the moment. Uncertainty regarding overseas economies, uncertainty regarding new taxes and charges, a relatively unstable political environment (for Australia) and many other facts are contributing to a down turn in business confidence.

A new white paper is now available from our website titled "Managing Back To Certainty". Developed by the HR Coach Research Institute, the white paper discusses the current external and internal factors effecting businesses and identifies the "Top 5 Attributes of High Performing Businesses".

Based on research conducted over 6 years and 5000 businesses, the paper identifies the factors that allow a business to be "agile and move with the times". The research shows that employers who are thriving are focusing on key differentiators as opposed to organisations that are at risk.

The important factor in regards to the research is that it has been conducted in the "business" rather than the "corporate" environment. As a result, we get a very good idea about some of the issues that are effecting small and medium sized businesses.

The paper identifies that small to medium sized businesses have "clear advantage" over the corporate world in responding to the challenges that face us and can create long term opportunities leading to sustained growth - despite the external environment.

To download the white paper - Click Here

Modern Award Amendment for School Aged Workers Effective from 1 October 2011

Mon, 26 Sep 2011 06:42:00 GMT

Fair Work Australia has published their decision varying the General Retail Award 2010 to allow casual school aged workers to work shifts shorter than 3 hours.

The award has been varied as follows:

Clause 13.4 is varied by the addition of the following words at the end of the clause:

“provided that the minimum engagement period for an employee will be one hour and 30 minutes if all of the following circumstances apply:

(a) the employee is a full time secondary school student; and

(b) the employee is engaged to work between the hours of 3.00 pm and 6.30 pm on a day which they are required to attend school; and

(c) the employee agrees to work, and a parent or guardian of the employee agrees to allow the employee to work, a shorter period than three hours; and

(d) employment for a longer period than the period of the engagement is not possible either because of the operational requirements of the employer or the unavailability of the employee.

As we have stated in a previous blog post (Common Sense at Last! After School Work Back on the Agenda for Teenagers), we believe that this decision is a win for common sense by Fair Work Australia. It is a pity that it has taken so long, and a needless appeal to make it happen!

To download the determination, download the Determination from Fair Work Australia

5 Steps to Take to Protect Your Business.....

Fri, 23 Sep 2011 05:00:00 GMT

Last financial year, the Fair Work Ombudsman commenced prosecutions against in excess of 50 companies for underpayment of wages and entitlements to their employees.

The simple fact is that this number is just the tip of the iceberg. Many other employers have had to backpay employees as a result of underpayment. Just check out the Ombudsman's media release page (Fair Work Ombudsman - Media Releases) and you will see the number of press releases on the subject.

Late last year, we worked with a business that had been underpaying their employees over a long period. By the end of the process, they had back paid their employees nearly $100,000 - quite a hit on a small business!

Now, this situation was one where they had innocently made an error in calculating a 40 hour week. The Ombudsman recognised this and no further action was taken. However, there have been fines handed out to businesses and Directors where the Ombudsman found that taking further action was appropriate.

One example of a company based fine was where a franchisee from a major franchise group was fined $150,000 for underpaying staff. Directors have also been targeted, with a recent prosecution fining individual directors a total of in excess of $130,000 for underpaying 47 staff.

Under the current system of Modern Awards and Transitional Arrangements, calculating how much you need to pay your employees can be confusing. However, it is important to recognise that confusion, or not understanding your commitments is not an excuse for underpaying staff. In the end, at best, you will be required to back pay them any entitlements they may have not received.

So what can you do to protect your business? Well here are our recommended 5 Steps to Protect Your Business:

Understand and be compliant with the National Employment Standards.
Identify the modern awards and classifications that apply to your employees;
Make sure your employees receive compensation for actual hours worked, paying particular attention to ordinary hours of work, overtime and penalty rates, and shift allowances.
Do you work a 40 hour week in your business? Do you roll leave loading into a salary or hourly rate? These type of arrangements (and others) come under the heading of "Award Flexibility" and you are required to ensure your employees are "Better Off Overall". If you do not understand the requirements around Award Flexibility - seek advice.
Make sure you keep the right records! If you are investigated, you will need to demonstrate compliance. To do that your record keeping will need to be accurate and in accordance with the requirements.

If you need assistance in any of the above areas - then give us a call! At People Smartz, we are more than happy to assist you!

Small Business Needs An Industrial Relations System that Works For It!

Mon, 05 Sep 2011 09:25:00 GMT

Did you know that 89% of employees in Australian Businesses were employed by companies employing 20 employees or less? (Australian Bureau of Statistics 8165.0 2010)

When you consider this statistic, you need to wonder why our industrial relations system is designed for 11% of the workforce!

It all comes down to some very important factors (in our opinion):

The employers of 11% of the workforce are bigger contributors to the political parties
The 11% of the workforce are the primary targets of our union movement; and,
The employers of 11% of the workforce are the major drivers of industry bodies supposedly in place to support business.

Over the last 5 years we have been governed by industrial relations systems based on the "visions" of big business (Work Choices) and unions (Fair Work) of how industrial relations should be governed.

However neither of these "visions" has been designed to meet the needs of the majority of employees or employers - those involved in operating a small business!

Some points to be considered:

Both Work Choices and Fair Work were designed to encourage an "us and them" attitude. Small business is largely about "getting the job done together".
While we need to protect minimum standards, less than 1% of employees through out Australia made an official complaint against their employer last year - this does not indicate a major effort by employers to "rip off" their employees.
While the structure of the business might say "Pty Ltd", the relationship between an employer and an employee in a small business is often a "one to one" relationship. It is not one where HR experts, lawyers or many levels of management are involved. The current laws are not designed for small businesses with confusing arrangements and restrictions across the system.

In our opinion, the current calls for a full review of our industrial relations laws are warranted when viewed from this point of view. Unfortunately, our political system will not encourage a review with the majority of Australia's employees in mind!

Small Business and the Economy - Choose To React Positively

Fri, 02 Sep 2011 02:54:00 GMT

This morning I posted a quote on Facebook from John C Maxwell -

‎"Life is 10% what happens to me and 90% of how I react to it."

Posting this particular quote was not an accident. It is because I believe that in life, and in business, you have the ability to choose the way you react to a particular situation.

The current situation in regards to the World's and Australia's economy is creating a mindset within many business owners - one which says "here we go again" and "things are tough at the moment".

On the most part, I have to say that I agree with them! Things are tough at the moment - but all that means is that now is the time to actively seek opportunity.

I would like to give you two examples of clients of mine who are reacting positively to the current environment and actively seeking opportunity.

One of them is operating a single person business. She has had a rough year with her home flooded in the January floods and many other things happening around her. Yet, despite having to move home and her workplace 3-4 times, she has worked hard at grasping opportunities as they have been presented to her. Despite working in an industry that is flat lining, she is one of the few of her peers who is able to predict a positive cash flow over the next 6 months.

The second client is a team of two young professionals who have looked at the economy, identified potential markets for themselves and actively worked those markets hard. Where other companies in their industry are laying off staff, they are hiring. Where other companies in their industry are lowering their rates, they are raising theirs. Where other companies are loosing customers, they are gaining them.

Both these clients have one thing in common. They have chosen to take a positive approach and grasp opportunities as they present themselves. Importantly, they have worked hard at establishing relationships with other businesses to encourage a flow of work between the different businesses. In short - their efforts are not only ensuring the success of their own business but also assisting others.

Over the past two or three weeks, I have met with many business owners who are "doing it tough" and I have shared these stories with them. It is interesting to hear their feedback. Many were continuing to do things they had done previously because they had worked previously, others were looking for the silver lining - one retailer told me that things would turn around over the coming months because "people will start getting their tax cheques".

Well, I'm sorry, people have been getting their tax cheques now for nearly 2 months! And what happens if they decide to bank their cheque rather than spend it?

Waiting for a silver lining or continuing to do the same things does not change something. Taking a positive approach and seeking a new way is - in other words choose to respond rather than choose to do nothing!

This is what we are encouraging our business coaching clients to do and everyone of them is achieving their targets. In the case of the two I have described above, we are re-writing the targets - they are not high enough! On average over the last six months our clients have achieved an average increase of 62% in revenue during a period where "things are tough".

So if you own a small business, think about how you are reacting to the economic environment - are you taking advantage of the opportunities that are out there and taking a positive approach?

People Smartz is a Business and HR Coaching company specialising in assisting small to medium sized business owners. Our aim is to assist Business Owners to achieve both their personal and business goals in a balanced and sustainable manner. If you would like to discuss business coaching - Contact Us

A Lesson In Expectation Management

Tue, 02 Aug 2011 02:06:00 GMT

Today I was almost involved in an accident in my car.

I was driving along the road, the last of three cars travelling along a suburban street. Up ahead was a side street with one car waiting to turn out and another waiting to turn into it.

Unexpectantly, the first of the two cars ahead of me suddenly stopped to let these two cars exit and enter the side street.

Taken by surprise, both I and the driver of the second car braked hard. Unfortunately, the second car was unable to stop in time and drove straight into the rear of the first car, which then crashed into both the cars turning. Luckily, I was travelling far enough behind to avoid being physically involved and my car was undamaged - something I can not say for the other 4 cars involved.

More importantly, no one was injured in the accident.

Now what has this got to do with a blog about business you might ask?

Well, it teaches us a lesson in why it is important to manage expectations in your business - when you don't, the unexpected happens!

We have road laws that control how traffic behaves, signs that indicate who is required to give way or stop, speed limits and many other things that are provided to ensure we are safe and consistent on the road. Today's accident occurred (in my opinion), because someone decided that they would do the "unexpected".

Simply, he stopped to allow traffic that legally did not have the right of way to turn. As he stated after, he thought he was "doing the right thing" and that "they could be waiting for ages".

The problem was that this was not a behaviour those travelling behind were expecting - we were expecting him to follow the rules. He hadn't even thought that others would be expecting him to do something different!

Now we have said before in this blog that the number one thing we see when asked to assist businesses with issues that develop with people is that there is an inconsistent approach to expectation management.

When expectations aren't clear or not understood, then problems occur. In the case of the car accident, the expectations were clear, but the understanding was not - the driver did not understand the need to stick to rules, he did not understand the effect that his actions may have (I am sure he does now!)

So there is a lesson to be learnt from today's event - how you deliver and ensure understanding of your and your businesses expectations is important in ensuring your business remains on track - without any "accidents".

This is were tools such as position descriptions, employment agreements, codes of conduct, processes and procedures become very important. They lay out the basic "expectations" of the business in regards to behaviours, customer and peer interaction, business development etc. If these are clear and easily understood, you are a long way along the track to ensuring a smooth running business.

In line with this is ensuring that you have strong systems to communicate formally and informally with your team. This includes performance management systems and the way you pass on important information. Regardless of the size of the business, these systems in themselves can be designed to improve both individual and business performance.

Equally important is the demonstrated behaviour of owners and managers of your business. By ensuring your own actions are line with these expectations, you are providing an example to your team.

If you would like to improve the performance of your team, first look to how you manage your expectations - For many years, we at People Smartz, have been assisting in ensuring that businesses run smoothly through the strong development of these expectation management tools and behaviours. Call us today to assist you!

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Business Confidence Dropping - Latest Quarterly Index released

Fri, 29 Jul 2011 22:12:00 GMT

The HR Coach Research Institute has released its latest quarterly index.

The latest information coming out of the business sector indicates a significant drop in business confidence and a unique situation developing in terms of a two speed economy.

The following summary is provided courtesy of the Institute:

"Alarmingly, this data was compiled before any firm Carbon Tax plan was released by the federal government, thus does not account for the affects of the proposed tax. In light of this, confidence and sentiment in the business sector will most probably not improve in the coming quarter.

Furthermore, job advertisements fell, as did job creation in the past quarter.

The multi-speed economy in Australia is presenting the business sector with the unique situation that has the economy growing whilst at the same time making business owners retreat into survival mode. As a result long term planning and strategy are suffering.

Interestingly employee satisfaction levels within the business sector are higher than those of business owner's satisfaction with their own business. This could exacerbate already strained relationships."

You can download a copy of this latest research from our website - HR Quarterly Index

Common Sense at Last! After School Work Back on the Agenda for Teenagers

Wed, 22 Jun 2011 06:21:00 GMT

On Monday, Fair Work Australia finally laid down a decision that should have not been required in the first place.

Nearly a year and a half ago, a number of teenagers lost their after school jobs because of a clause within the General Retail Award which basically said a casual could not work for less than a 3 hour period.

For these teenagers, this effectively ruled out going to work after school as the time between school finishing and the retail outlet they worked in closing was less than 3 hours.

Now having restrictions on the minimum hours that can be worked is understandable. In fact, to a certain extent, I support them. However, when you are restricting the ability of teenagers to learn important work habits, then the law needs to be modified.

Arguments from unions etc that easing this restriction would lead to "job losses" and "lower wages" did not really argue the primary point - that by enforcing this rule we were interfering with what is basically a vital learning area for our younger generations. To suggest that allowing teenagers to work out of school hours was going to cost adults jobs just goes against the fact that most of those adults started exactly where these teenagers are now - with after school work! Where did these adults learn the work habits that brought them to employment in later life if not in jobs such as these?

While it took 16 months and 3 rounds of arbitration to get there, this is a decision that should be congratulated. Despite the unions and government supporting the maintenance of the 3 hour limit, the tribunal has decided that provided a certain set of circumstances exist, a school aged person can work for less than a 3 hour period.

Under the new arrangements, school age persons can work a minimum of a 90-minute shift. This will apply only if the employee is a full-time student; that the hours worked are between 3pm and 6.30pm on a school day; and the employee and their parent or guardian agrees on the shorter period. The shorter period is also allowed only if employment for a longer period is not possible because of the operational requirements of the employer or the unavailability of the student.

These arrangements are simple commonsense. It is a pity it took so long to arrive at this decision!

Dress for Success - An Important Message for All Business People!

Thu, 16 Jun 2011 23:32:00 GMT

Have you ever wondered how important good presentation is to your business? How dressing your team well could impact your business performance. Have a read of this great article from one of our business partners - House of Colour Brisbane. If you or your staff are in need of an "image refresh" - their contact details are at the end of the article!

First impressions matter, your customers’ opinion of your company, your product or your service will be influenced by their opinion of you and your staff. Thus it is vital to ensure that your professional image is giving the correct message about you and your business.

Firstly think about your profession and who you are going to meet, you need to dress appropriately for what you represent, but also for your clientele and also the location where you are meeting. If you are a personal trainer going to talk to a church group about the benefits of exercise and healthy eating it would be unwise to dress in full business suit regalia, instead it would be more appropriate to dress in a smart, clean, branded polo shirt and smart trousers. Whereas if you were a banker presenting to the same group you would want to carry slightly more authority so a quality shirt and tie (in your top colours) but without a jacket, since you need to be approachable to that group and a jacket can be a barrier to free communication. However, if you were the same banker presenting to a potential corporate client, you would want to carry full authority with a quality well fitting suit, a tie and high quality accessories.

The accessories we use are also important; these are a silent form of communication which can establish your professionalism. One client of mine, a female financial planner noticed a difference in the reaction of her potential clients when she switched from her basic phone to a Nokia communicator, suddenly she was taken more seriously - she had the correct tools for the job.

Likewise be aware of the watch you wear, a smart, quality watch shows you value your time, and thus the time of your clients, whereas as a sports or branded watch may be fun, but is it appropriate in a business environment? Another accessory to consider is your pen, does the pen you use state Professional Person? Or is it a chewed Biro which does you no favours in the status stakes? And what about your briefcase? Is this sending out the professional message or is it past its sell-by date and needing replacement?

I recently met with a sales guru who wanted to make sure his image portrayed his professionalism and that he wasn’t displaying any unknown barriers to communication. We looked at his accessories, and I immediately pointed out his key fob, it was a UK football team logo and it turns out he was an avid supporter of this team, well what happens if his client is an avid supporter of the opposing team..?

Grooming is probably the most important factor, you can have all the right tools and dress appropriately for the situation, but if your personal grooming is not impeccable you will not create the desired for first impression. Make sure that hair is clean, neat and not a distraction, make sure your fingernails are clean and for women that nail polish is not chipped. If you are female, wear appropriate make-up, a lack of make-up gives the impression you have just got out of bed and could not be bothered, whereas heavy pancake make-up can be mask to hide behind and is not appropriate in a business setting.

Finally make sure you are dressed in your top colours, wearing the wrong colours can make you look, tired, drawn, overweight, drab and boring, whereas wearing clothes in your correct colours will ensure you look healthy and dynamic.

Ann Whitaker
House of Colour and Image
Tel 0424 656 097
Email ann.whitaker@houseofcolour.com
Website www.houseofcolour.net.au

Building on The Strengths in Your Business

Wed, 25 May 2011 10:12:00 GMT

When we first started People Smartz, our aim was to assist companies who understood that people are the most important asset a company can have.

Our aim has never changed, we believe that it is people who can drive a business to success and have not moved from this belief.

This means our aim has always been to work with businesses to assist them to build the individual and collective capability within a business - the aim being what we call "Mutual Success".

Last week we met with one of our long term clients. They are a small company of 20 employees with offices in two states.

This company has strong leadership, some good managers and some good people - A recently completed employee survey assessed their employee satisfaction at 73%!

But it was the items that the survey raised that interested us - what they were doing well, and what they could do better.

What the survey enabled us to highlight was the differences in management and leadership between the states. Where one state was strong in communication, the other was not, where one state was strong in sharing company performance, the other was not etc.

This has enabled us to see identify the individual strengths of the managers and use them in our planning to assist the company in moving forward to "mutual success". By developing a plan utilsing the individual competencies each manager is displaying, we can use those strengths to develop weak areas in another area of the company, or even in another individual.

Building on what you already have in an organisation can sometimes have a very positive effect on a company. By identifying the strengths you have in managers and staff, and utilising them to build the business you are developing not only the company but building responsibility, accountability and ownership - all positives for any company!

If you would like assistance in developing a plan to improve the performance of your company and encourage "mutual success" - Contact Us Today!

New Numbers Released on Unfair Dismissals

Sun, 15 May 2011 10:38:00 GMT

For the last two years, we have released many blogs posts on the unfair dismissal laws contained in the Fair Work Act.

Earlier this month, Fair Work Australia released its latest quarterly report. It contains some interesting numbers in regards to unfair dismissal claims and the Fair Dismissal Code for Small Business

With unfair dismissals, the tribunal received 3219 unfair dismissal applications in the quarter. The overwhelming majority of these (2564), were settled at or before conciliation. The tribunal made decisions on only 64 dismissal claims in the quarter, finding 24 were unfair and 40 fair. Only 18 claims resulted in a decision awarding compensation to the ex-employee.

Employees are now much more aware of their rights under the act and claims are on the rise. Many of our clients are reporting that claims made against them have been frivolous and they have settled "just to make it go away". The numbers released this month certainly seem to uphold what they are telling us!

From the numbers presented by Fair Work Australia, The Fair Dismissal Code for Small Business is not working! While 609 applications related to a small business employee, only two were rejected because the dismissal was consistent with the code.
We believe this is a worry - if followed, the code is designed to protect a small business from unfair dismissal claims. At People Smartz, our experience is telling us that, if they know about the code at all, most businesses are finding it difficult to understand - after all, it is basically a corporate process that they need to follow!

We believe that small businesses are generally finding it difficult to work with these laws and over time the issues they present are compounding. The latest set of numbers from Fair Work Australia seem to indicate this is correct!

Given the current state of Australia's workplace laws, small businesses need to ensure they have the systems in place to protect them against unfair dismissal claims. This includes having appropriate systems in place to manage poor performance and terminate staff.

At People Smartz, we are experienced in assisting our clients to put such systems in place. For many years, we have had in place a review process for small business called a "People and Business Review". This is designed to review what is in place in your business and assist you to identify the changes you need to make to protect your business. Why not book yours today?

Contact Us Today!

Pressure Rising on Fair Work Act

Tue, 19 Apr 2011 22:32:00 GMT

It appears that we are finally starting to see some real pressure being put on the Opposition to provide a real policy difference between the parties in relation to industrial relations. Even Heather Ridout, once a supporter of the Fair Work Act, has recognised the need for debate in this area

And it is about time too!

The Fair Work Act does not balance the playing field in industrial relations and is providing disincentives to small and medium sized businesses. It is complex and a minefield for players in the game who do not have the time, resources or knowledge to manage it.

At People Smartz we work predominantly with businesses who do not have a Human Resources team, they do not have experience in interpreting the awards and they do not have the time to understand all the complex points of the different areas of the law.

Only last week I conducted a review for a small business person. His business was operating well and, as far as he was concerned, was compliant with the award and legislation. However, by the time the National Employment Standards, the Modern Awards, the transitional arrangements and the difference between state and federal jurisdiction had been explained to him his comment was "how am I supposed to keep up and understand all this!"

This particular gentlemen was not working with his staff compliantly and needs to make changes to his employment arrangements. Due to the changes between state and federal coverage, he had missed several important points of coverage, because of transitional arrangements he had missed increases in minimum wages, because of a lack of understanding of the National Employment Standards he was underpaying staff in accordance with the "Better Off Overall Test".

He is not alone. We see small and medium sized businesses every week who are in some way not meeting the minimum entitlements under this legislation. And it is important to note that this is because they don't understand the requirements on them.

Over 80% of those employed in Australian businesses are employed within businesses that have less than 5 staff. These businesses are the real engine room of Australia's economy and they are woefully ignored by an industrial relations system which is not designed to help or support them. Nor have we seen any real effort to provide them with the education they so badly need.

Since 2005 we have had two pieces of legislation that have led the industrial relations debate - Work Choices and the Fair Work Act. In my opinion, each of them has taken the debate to the extreme left or right in an effort to either decrease or increase the power of unions within the Australian political and industrial relations arena. Their underlying aim has not been the development of any "fair and equitable" system, nor have they been designed with the primary aim of benefiting the Australian Economy. Their real and underlying focus was on union power.

It is time that we moved this debate along, the opposition needs to move on and start challenging the inadequate aspects of the current legislation and bring the discussion back to developing a system designed for all Australians and that can support all Australian businesses. The Opposition needs to stop treating this as a "no-go" area, forget Work Choices and begin encouraging real debate in this area.

It is only through real debate that we will see change - thank god, we are beginning to see some movement in that direction.

Importance of "Fair" Disciplinary Procedures Emphasised

Mon, 21 Mar 2011 04:43:00 GMT

A recent case before Fair Work Australia has emphasied the importance of employers having a fair and published process in regards to handling disciplinary problems with staff.

The case (Michelle de Leon v Spice Temple Pty Ltd [2010] FWA 3497, revolved around the "abrupt and quite unprofessional" manner with which an employee had dealt with a high profile customer.

As a result of a complaint from the customer, the employee was dismissed from her position.

The Deputy President of FWA was very critical of the employer because:

the decision to dismiss the employee was made prior to meeting with her to discuss the issue. In the words of the Deputy President, she was effectively "ambushed" by the allegation and was given no opportunity to respond to the allegation.
she was not given the opportunity to have a support person present at the meeting (the employer did suggest that the staff members immediate supervisor was present to support her but this was not accepted).
she was not given any written warning about her conduct nor was she given a letter of dismissal stating the reasons for the dismissal.

In the end the Deputy President described the whole process as "a complete sham" and "totally unacceptable and a denial of procedural fairness". The Deputy President also described the situation for which she had been dismissed for as not "coming within a bull's roar" of the commonly accepted definition of misconduct. Finally the dismissal was described as "harsh, unjust and unreasonable" and "if there was a scale of unfairness, this dismissal would be in the top quartilie".

The employer was then ordered to pay the employee 12 months pay as full compensation for loss of wages.

This case highlights the importance of ensuring you have a fair and equitable process in place to handle disciplinary issues.

At People Smartz, we regularly receive calls from members of our community who do not have these processes in place. Generally, the call is received when a problem has arisen and there is some concern regarding the situation. In nearly all cases, the presence of a established and published process for dealing with such situations is needed but is currently not in place.

At People Smartz, we can assist your business to have the appropriate process in place, easy to use and tailored for your business.

Contact Us Today For More Information

Warning - Fair Work Ombudsman says Leave Loading Payable on Termination

Wed, 02 Mar 2011 00:12:00 GMT

The Fair Work Ombudsman has given advice that award wage employees are entitled to the payment of leave loading on termination of employment.

In the past it has generally been accepted that on termination of employment, a departing employee was entitled to the payout of annual leave accruals but not leave loading. However, in a Senate Hearing a couple of weeks ago, the Fair Work Ombudsman announced that they had received legal advice from the Australian Government Solicitor saying that award wage employees "should now be entitled to loadings on untaken annual leave"

From our understanding here at People Smartz, this advice is based on the fact that the The National Employment Standards, which apply to all employees, actually say that employees must be paid out accrued annual leave payments at the rate they would have been paid if they had taken annual leave. If leave loading is applicable to the employee - then this means that leave loading is payable on termination.

Has would be expected, the Federal Workplace Relations Minister - Senator Evans as backed the Ombudsman and the advice being given. As also can be expected Employer Groups are not happy...

During a recent conversation with Fair Work Australia, we asked if employers would now be liable to backpay claims from employee. Their reply was that " this would be applicable to employees who terminated any time after January 2010". This also opens the possibility of complaints being lodged with the Fair Work Ombudsman regarding underpayment of entitlements. If this occurs, we expect, and hope, that the FWO would treat such complaints on their merits.

So what do you need to do

First when calculating termination payments, you need to fact in leave loading (if applicable to the employee).
Next - if you are approached by an ex-employee for the payment of leave loading (if they were terminated after January 2010), you need to backpay them their entitlement.

If you would like more information on this development - Contact People Smartz

Queensland Floods and Employment

Fri, 14 Jan 2011 02:55:00 GMT

With Queensland in the midst of one of the great natural disasters, nearly every business we are speaking to is effected in some way. Some are under water, or commencing the clean up after being under water, others are not but have staff and team members effected. This scale of this is just incredible. Our thoughts are with each and everyone of you.

Over the last couple of days we have begun receiving queries about issues regarding employment and the floods. If you would like information on employment issues such as leave, standing down employees etc, visit our Queensland Floods page.

We have also created a forum topic where people can go to ask questions - The People Smartz Forum. It you have any questions regarding employment and the floods, feel free to post them so everyone can see.

Unions to Push for Casuals to Become Permanent

Mon, 08 Nov 2010 03:45:00 GMT

The unions last week began a push to enable casual employees to transfer to permanent employment.

The plan proposed by the unions would require employers to make casual employees permanent after 12 months. There was also some discussion in the plan about governments “favoring’ companies with majority permanent workforces in the awarding of contracts. The unions believe such an approach is necessary to tackle “precarious employment”.

Business groups were not happy (as you would expect) claiming that such moves would drive companies “to the wall”. They called the approach a “misguided view of the jobs sector” and said “it doesn’t relate to the modern-day Australian economy, which is dominated by the services sector”.

We gave had such rules before. In 2004/5, rules where “regular and systematic” casual employees were allowed to request part time employment were introduced. We had a similar “hue and cry” then!

From my experience, very few casual employees wanted to take up the opportunity. Australian workers generally understand the difference between casual and permanent employment and are often loath to let go of the 20-25% loading for casual employment.

Casual employment is designed to allow an employer to handle the peaks and troughs of their business. Casual employment contains no guarantees and no expectations of employment beyond the end of the current shift. In its purest form, it is “call and come to work”. Because there are no guarantees or expectations of future work, a loading is paid to compensate for the lack of annual leave, sick leave etc etc.

But the needs of the business often necessitate rostering casuals for work, sometimes weeks in advance. Overtime, this leads to businesses adopting rostering systems which virtually “guarantee” work to a casual. Basically, the employment becomes “regular and systematic”. When work becomes regular and systematic, the question needs to be asked – are they really casuals?

This is the point behind the unions push. If a person is employed as a casual but doing regular shifts and systematic work then they should receive the entitlements of permanent employees because in practice, that is what they are.

Whether you agree or don’t agree with the unions, there are many advantages to creating a permanent workforce in your business. A guarantee of employment encourages commitment and develops “ownership” in the role. Accountability is easier to assign to someone whose employment is guaranteed and your ability to develop consistent behaviors’ is improved.

Many businesses I deal with argue that putting on permanent staff “takes away the flexibility” from their business. For some businesses this may be true, and for them, I would not recommend such a measure providing the employment they were offering was not “regular and systematic”.

Another argument I often hear is that it is too expensive to have permanent employees. Well, the fact is that in the long run it is probably cheaper! While you need to accrue leave etc, you will not be paying the 20-25% loading and your productivity will most probably improve. The reality is that it often has nothing to do with “cost” but more to do with “ease” – it is easier to pay everything out with a 20-25% loading than have to “accrue”.

The ease of “getting rid” of casual employees is also stated as a reason for keeping people as casuals. However, the reality is that if they are regular and systematic in their employment, the unfair dismissal rules will most probably apply – the end result being that this argument is flawed in its execution!

For any workforce, permanent or casual, I recommend you sit down and work out the number of hours being worked in your business. Is there a constant number of hours worked in each week? This is the first step in working out whether you can (or should) put permanent employees in place. If you can, casual employees can then be used to handle the peaks and troughs – not for the constant hours.

If you must have casuals in your business, then think seriously about how you work with them. Do you roster them in a regular and systematic way? Do you need to do this? Can you do it any other way? In other words – do some workforce planning!

Would you like to know more about how you can improve the use of people in your business? At People Smartz, we assist businesses in planning for the most efficient and effective use of their workforce. We work with you to ensure that you are using your most important resource in a manner which leads to success for you, your business and your team. Call us today!

Free Superannuation Clearing House For Small Businesses

Thu, 04 Nov 2010 20:44:00 GMT

One of the things small business clients often talk to me about is the time it takes to process their superannuation obligations, particularly when they have a number of employees with different superannuation funds.

Well finally we have seen the establishment of a clearing house to help small businesses meet their obligations!

A free (and optional) super clearing house service is now available to small businesses with less than 20 employees to help them meet their super guarantee obligations.

The Small Business Superannuation Clearing House is administered by Medicare Australia and lets employers pay their super contributions to a single location in one simple electronic transaction.

Small businesses that register to use the service will have their super guarantee obligation discharged, as long as all of the following apply:

they pay the correct amount;
they pay by the super payment cut-off date;
the payment is accepted by the clearing house; and
the payment is not rejected by the super fund.

Employers who receive an employee's choice of fund nomination will have their choice obligation discharged if they pass the information to the clearing house within 21 days of receiving the choice of fund nomination.

Small businesses can register online for the service by:

visiting the Medicare website at www.medicareaustralia.gov.au/super; or
phoning Medicare Australia on 1300 660 048.

Mutual Success Workshops - Benefits for All in the Business

Tue, 26 Oct 2010 05:57:00 GMT

Recently People Smartz launched a new one on one workshop called "Mutual Success".

These workshops are built on the premise that employers and employees working together can achieve success on a business and individual level. We've called this "Mutual Success". Really, its all about building busienesses through stong connections between all members of a business's "Team".

The workshops take a whole of business approach to managing people in a business. They begin with seeking the needs of the business owner and identifying those areas of the business which may be effecting the achievement of "Mutual Success".

This begins with the basics - is the business providing their team members with all their entitlements, is the business complaint with Australia's new industrial relations laws and what behaviours are effecting the achievement of success.

We then move on to talking about how the business can move someway towards achieving "Mutual Success" and putting in place a plan to start them on their way.

Having completed a small number of these workshops, I have found that the results are incredible. Not only are businesses finding new ways towards success, they are also covering off on important areas of compliance. For thoses businesses, managing people has become a factor in their success! One comment made by a workshop participant was "this has changed the whole way I look at my staff. They are part of my competitive edge - not just a cost on the business".

At People Smartz, we strongly believe the development of "Mutual Success" is essential to the success of small to medium sized businesses. In fact, we believe so strongly in this concept that we have decided to offer the "Mutual Success" workshops to small and medium sized business for free for the next 3 months!

Businesses taking part in the workshops come away with

A new awareness of what may be challenging your business in regards to staff within your business
Identify 3 things you can do now to improve productivity, staff retention and staff costs in your business
A 3 month “Getting the Basics Right” Smartz Plan individualized for your business that you can begin work on straight away!

Visit our booking page to find out more today!

Christmas and Your Business Party - Beware....

Tue, 26 Oct 2010 04:49:00 GMT

Recently, Australia's newspapers have been full of the story regarding the Sexual Harassment claim against the CEO of David Jones.

These stories have highlighted the risks businesses have regarding harassment in the workplace. However, the purpose of this posting is not to discuss the David Jones case - it is to highlight the fact that we are now approaching that time of year where such complaints increase.

Yes it nearing the end of the year. We are entering party season - a great time to unwind, rub shoulders with workmates etc. This can be a fun time!

But end of year parties have a very serious side as many of these antics lead to "regrets" after.

Recent research in Australia found that 70% of people believed that hitting the booze led to a more "personal" feeling amongst staff. Nearly a quarter of females interviewed admitted that their boss had made a pass at them at an office party.

Such behaviours can present many problems for businesses, particularly if the "antics" involved lead to a complaint from a member of staff regarding the behaviour of another.

It would be easy to say "no office party" or "its too risky", but sometimes the advantages of holding the party far outweigh the negatives. The decision to have or not have one is one for the business alone.

I would recommend a level headed approach to this years Xmas party - making sure the party is well planned and your staff are aware of the required behaviours before hand. This way you can have the fun while managing the risk!

To help you plan for your businesses party, download our Christmas Checklist today.

Government Reports Number of Unfair Dismissal claims on the Increase

Tue, 26 Oct 2010 04:36:00 GMT

Recently, the Parliamentary Secretary for School Education and Workplace Relations said that the number of unfair dismissal claims under the Fair Work Act had increased.

She said the number of claims in the 12 months to June this year was 10,751. This is significantly up from 2008-2009 where a total of 7,994 claims were made.

If you like talking in terms of percentages, this is a 35% increase in claims.

Significantly, she also said that “83% of claims” were resolved through conciliation. She used this as evidence that the new system was “working”.

I am seeing clients weekly who are becoming more concerned about the effects of the new laws and the ease of making an unfair dismissal claim. For them, the figure of “83% of claims” is evidence that the system is “not working”.

They are hearing stories of businesses paying “go away” money to make these claims go away – regardless of the validity of the claim.

Now, there has to be some protection for employees against unfair dismissal – I don’t think anyone will argue with me on that. Laws of the type we have now work better in the corporate environment, and largely that is where their designed for use (I will not argue whether they “work” in the corporate environment – that is another issue). In smaller businesses however, a different set of circumstances are at work.

First, SME’s normally do not have access to HR Teams or the systems in place to manage problem situations. Normally they are handled from gut instinct or based on a small amount of experience. Often that experience is under previous industrial relations regimes and not necessarily relevant to the current circumstances.

Second - Without having the systems in place, the business owner and the employee are often directly affected by the complexity of the new laws. The majority of small business owners I have spoken to have never heard of the “Fair Dismissal Code for Small Businesses” and have very little idea about the steps they need to take to protect their business – and themselves.

I regularly receive calls from businesses that are having problems with employees. Because they do not have formal processes in place, they are concerned that their actions may result in a complaint or claim against them. The regularity of these calls is increasing. Another example of this is the increasing number of businesses approaching People Smartz to request assistance with putting in place systems to protect their business – this has increased by 22% since this time last year!

For the first time ever, we are also receiving calls from employees – asking how they go about making a claim! Over the last month, we have received 12 such calls with another 5 queries through our website. All except one have revolved around perceived unfair treatment in the workplace or underpaid entitlements.

While this is good for our business, the fact is that small to medium sized businesses need education, a concentration on developing fair and equitable systems and assistance with developing productive and efficient workforces. They do not need increased complexity, aggressive regulation and regulatory systems that encourage claims regardless of their validity.

However, this is the regime that we have. The Work Choices legislation has resulted in a polarization of the debate about the industrial relations system and we are unlikely to see a constructive debate about the system for awhile yet. As a result, businesses need to work to develop the needed systems and infrastructure to ensure they are compliant.

People Smartz is ready to assist small to medium sized businesses to ensure they are compliant and protected. We offer a number of services designed to review and inform businesses of the areas of risk in regards to the new legislation. Why not start by booking your Human Resources Review of Your Business today!

Is "Systematic" Coaching the real answer?

Thu, 19 Aug 2010 11:49:00 GMT

Recently I read a blog by a member of a large international coaching organization. In the blog, the writer quoted W Edwards Deming (a guru of quality management and credited with the rise of Japan as a world powerhouse in manufacturing after WW2).

According to the writer, in the quote, Deming said that “that 94% of all failures in a business are the result of the “systems” in the business and only 6% of the failures are caused by the people in the business.”

I agree with Deming, however I disagree with the blog writer (who even managed to spell Deming's name incorrectly) who basically then went on to use this quote to explain why systems over people will create “leverage” in the organization.

The basic fault with the article was that it was designed to promote a systematic version of business coaching that is more concerned with short term gains rather than long term ones. It is designed to encourage people to take a one size fits all approach to a business without taking into account the individual aspects of; or the people in, their business. In short, it was an article designed to inform about how to save time, create a picture of short term success and promote their product.

Now, I’ll be up front and say that my blog is designed to raise the profile of my business. I believe you were probably aware of this when you started reading; however my approach here is to ask you to think about the relationship between people and systems.

I believe that a business’s success is a result of the direct relationship between efficient systems and the people running them. Systems are not the end, they are the beginning of the real process – that of creating a long term viable business.

See if you agree with the following comments:

People run the systems, not the other way around.
People make decisions, not the systems (the system can guide them in the right direction but in the end it is the people who make the decision).
People create relationships with People, not with systems.
A business succeeds because of the drive of the people running it – the systems make sure they are all on the same road.

I am not writing here saying that systems are not important. In fact I believe they are important tools in maintaining consistency and quality, setting expectations and ensuring your business succeeds. The more systemized a business is, the more likely it is to succeed. Not because it is systemized, but because the systems create the time to concentrate on the important factors of business success.

The important word in the previous paragraph is “tool”. Because that is what a system is - a tool that assists you, and your team, to achieve business success. Imagine telling a carpenter that he didn’t build the shelf, the power drill did? Would he or she accept that? No way! It is the same with your business, you need the systems as a tool towards the end product – and success for your business is the end product.

But regardless of the systems you have in place, it is important to have the right people to run them. This means becoming very good at knowing who the right people are in terms of attitude, skills and abilities. Simply getting the right person in your organization, training them and working with them is probably one of the most important roles of a business owner or manager.

I know of one coaching organization that is so systemized in its recruiting approach that it advocates placing an answering machine on the phone, asking people to sell why they should get the job to the answering machine and then inviting the best answers to a “group interview” (Don't believe me - drop me a line and I'll give you the title of the book!) The designers of this "system" know business owners are time poor, they know that saving time is attractive - so they have come up with a system designed to “save time” not to select the right person. Ask yourself would such a system really work for your business? Would you be confident of selecting the right person?

In the last week, I have received a call from a client of one of the bigger coaching groups. They are looking for a business coach who is “people” rather than “system” orientated.

They commented that they had commenced coaching on the same week as another business run by a couple they are friendly with. They were in different capital cities, using a different coach from the same international coaching franchise.

The funny thing is that they had compared notes and found that the things they were being asked to do, the information they were being given and the advice they were being given was exactly the same – even to the point of them receiving exactly the same fax one day before a coaches visit on the same week of their program! What’s more, they both saw red when advised that all future coaching sessions would be over the phone to “save them time” – and that advice was given in the same week!

Maybe they were similar business you say? No - one was retail and the other light manufacturing, one had 120 employees, the other 15. One had been established less than a year, the other more than 10. In short, they were being coached via a system with no tailoring for their individual needs. Both companies are now in the process of finding a new coach. Why - because it was the system that was coaching them, not the coach.

To end this article, I would like to go back to W Edwards Deming. In his book “Out of Crisis”, he advocated a 14 point plan to save US industry in the 1980’s. While Deming was a big (read this to mean big) believer in systems, he was criticized for providing a set of goals (his 14 points) without providing any tools to make them happen. When asked about this by managers his reply was “You’re the manager, you work it out”.

And to end, another quote from Deming – “A system must be managed. It will not manage itself” (The New Economics for Industry, Government, Education (1993))

Seems even the quality guru, Deming, believed that business was about a relationship between people and systems....

I can only say that business coaching and consulting is the same. Think about this next time you look for a business consultant or coach – regardless of their specialty area!

P.S. I have made several comments and criticisms in this article, If you would like details of where this information has come from (i.e. links, books etc.) please contact me and I will be happy to provide (except where it would break client confidentiality).

Loyalty - is it right to expect it from employees?

Wed, 09 Jun 2010 05:44:00 GMT

A couple of days ago, I had a long conversation with one of my clients.

His lament was one I have heard before from business owners - that staff these days are no longer "loyal" to their employer.

There is an endless amount of research regarding the difference between generations, and the changing face of our workforce and really I don't intend to go into those in this blog - what I would like to talk about is an often missed part of "loyalty" - that of individual identity and identification.

Let me explain by using myself as an example - I spent a good period of my life in the Navy. If you were to ask who I was, I would say I was a "Sailor" - it is how I identified myself to myself. In fact, if I was talking to someone with a naval background I'd probably take this further and describe myself as a "Yeoman" - a title that would not mean much to people outside the Navy.

Now over the years, I have begun a new career, founded a company and been fairly successful in my endeavours. I truely enjoy the work I do, dealing with clients who are pursing their own dreams and goals. While my personal picture of myself has altered, there is still that element of my description which says "Sailor".

My point is that this personal identification has created in me a certain amount of loyalty to an organisation I left quite a while ago. In my mind, that recognition and loyalty is still there.

For Business Owners, it is easy for them to identify themselves with their business - after all they own it, run it and are responsible for its success or failure.

Sometimes it is hard for them to understand that their employees may not feel the same way about the business. But after all, if their employees have had no opportunity to "recognise" themselves as part of the business - what have they got to be loyal about?

Speaking to my client the other day, we begun discussing this in relation to his business. He is a very hands-on type business owner. For him, his employees are people who come in, do a days work and then leave - the business is his to run.

While talking, he begun to share some of his own experiences about when he felt the most loyalty to his own employers.

With this - he realised that he couldn't really expect loyalty from his staff if he was not offering them something to be loyal about.

I left him to think this over and consider what actions of his own were actually leading to the situation that was annoying him.

I'll let you know how he goes over the coming weeks.......

“We Don’t Need to Worry About That”

Tue, 27 Apr 2010 06:52:00 GMT

In my travels around businesses, I speak to a lot of businesses owners. One of the most frequent responses I get when speaking to them about the new industrial relations laws is the title of this blog.

“We don’t need to worry about that” is a refrain that I hear quite alot. The basic premise is that if they haven’t had a problem before, then they will not have one in the future.

As far as the industrial relations laws are concerned, thinking this way is not a smart move for business owners and managers. Over the last couple of months, I have seen an increase in the number of businesses calling me for assistance after having received a letter from the Fair Work Ombudsman regarding a complaint from an employee. On nearly every occasion, the business concerned had, until now, a belief that “We don’t have to worry about that”.

In a recent article, Judith Radisich from the Council of Small Businesses of Australia, in a response to a survey of small businesses said the following: “I am surprised that a higher proportion of small business respondents did not report complying with IR and OH&S laws takes up a higher proportion of their “people” time. Perhaps the main reason for this is that survey respondents don’t spend much time on compliance because the laws are simply too complex and virtually impossible to get on top of for most small business owners”. So, yet another reason for businesses to say “We don’t have to worry about that” – it is simply too hard to say otherwise!

One business I am currently working with has received two complaint letters and has been requested to provide payroll records. The danger for this company is that the complaint, if found correct, could result in a large amount of back pay being ordered that the company cannot afford to pay. Now the owners are not bad people, they have not set out to deliberately underpay their staff and are quite distressed that they may have. But even they admit that they thought “We don’t have to worry about that”.

The fact is that we have recently gone through one of the biggest revamps of industrial relations in a long time. When this is combined with an active workplace ombudsman (The Fair Work Ombudsman) with the power to order back pay, award fines and commence prosecutions then you have to wonder whether businesses can really afford to say “We don’t need to worry about that”.

Workplace Bullying - A Timely Warning for Businesses

Tue, 30 Mar 2010 09:39:00 GMT

Many thanks for this story to the HR Coach Network - it is a timely reminder for employers regarding bullying in the workplace and the possible effects of not having the appropriate measures in place.

A recent tragic case has highlighted the need for employers of all sizes to be proactive and vigilant in respect to bullying behaviour within the workplace.

The case involved the death of a 19-year-old cafe employee in Victoria, who committed suicide after more than 12 months of bullying at the hands of her co-workers. It was found that the victim was subject to constant taunting, criticism, name-calling and on at least one occasion had sauce poured over her clothes and hair.

In what is largely being regarded as a turning point for workplace bullying cases, the business was fined $220,000 for failing to provide and maintain a safe workplace and failing to adequately train and supervise its employees.

The presiding Magistrate said that the company had “tacitly approved” of the bullying behaviour. One of the company directors was personally convicted and issued a fine of $30,000. In a further landmark decision that has seen the liability for bullying extend beyond businesses to individual employees, three of the victim’s co-workers were convicted and fined a total of $85,000.

Combined with a recent survey indicating that nearly 1 in 5 workers has been subject to bullying, the case highlights the importance of employers and employees alike taking measures to prevent and eliminate bullying in their workplaces.